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To answer your question, everyone interested in paying much lower salaries to their workforce may decide to locate a factory in Romania. Market size, cost of op
by VSerge 11y ago
To answer your question, everyone interested in paying much lower salaries to their workforce may decide to locate a factory in Romania. Market size, cost of operation, infrastructure, neighboring markets, and many more factors play an important role in such decisions.
Taxes are far from being the most meaningful factor, and governments dumb enough to offer such deals are acting disgracefully towards both their tax-paying citizenry and their EU partners who don't engage in this race to the bottom.
- AnthonyMouse 11y ago> To answer your question, everyone interested in paying much lower salaries to their workforce may decide to locate a factory in Romania. Market size, cost of operation, infrastructure, neighboring markets, and many more factors play an important role in such decisions. Of course there are many factors that go into it. What matters is how the country stacks up on balance. Countries that stack up unfavorably have no financial capacity to address their shortcomings because you can't build infrastructure or education with no money and governments can't collect money with no tax base. What they can do is lower taxes to attract investment so they can get 5% of something instead of 30% of nothing. Their primary alternative for attracting investment is to abandon safety and environmental regulations, which is not better.